According to a report by Bloomberg, EOS developer, Block.one, is planning to purchase 10% of its stocks through a private buyback. Back in 2017, during the seed round, the company was valued at $40 Million. The buyback will raise the stock values of the company to about $ 2.3 Billion. The repurchase price is about $1,500 per share, in comparison to the fundraising price of $22.50 per share.

This action will mean that Block.one will return as much as 6567% to its earliest investors—in less than 3 years. Billionaire and PayPal co-founder, Peter Thiel, Jihan Wu of Bitmain, and hedge fund managers, Alan Howard and Louis Bacon, — all of whom bought into the company back in July 2018 are considered to be the major beneficiaries of this transaction.

As per a press release,  Michael Novogratz’s crypto merchant bank Galaxy Digital accepted the tender offer and completed the transaction with Block.one for $71.2 million, selling a majority of the Company’s position and realizing a 123% return on investment.  As per Galaxy Digital, “The acceptance of Block.one’s tender offer reflected a decision to rebalance the portfolio (of Galaxy Digital) to maintain an appropriate level of diversification after the position increased due to its substantial outperformance relative to the remainder of the portfolio.”

It is to be noted that less than 1 year back there was a stock repurchase offer in which Block.one sought to acquire 15% of its outstanding shares at $1,200 each.

The action has faced some criticism in the crypto circle with people fearing that this might lead to lesser transparency since it will consolidate ownership and have lesser outside attention.

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